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Novo Nordisk to acquire Emisphere Technologies
Posted on Friday, 06 November 2020 12:16
Novo Nordisk to acquire Emisphere Technologies

Novo Nordisk has agreed to acquire Emisphere Technologies, a drug delivery company with proprietary technologies, for USD 1.80 billion.

The acquiror will pay USD 1.35 billion to pick up all outstanding shares in the target.

In addition, Novo Nordisk will also pick up related Eligen SNAC royalty stream obligations owed to MHR Fund Management, the largest shareholder of Emisphere, for an additional USD 450.00 million.

With these acquisitions, the Danish multinational pharmaceutical company eliminates future royalty obligations to the target and its owner and obtains full access to Eligen SNAC’s technology platform, enabling the group to expand its portfolio of oral biologic pipeline assets.

Novo Nordisk plans to finance the deal using debt and the business is not expecting the transaction to impact its planned operating profit outlook for 2020 or the ongoing share buyback scheme.

The acquisition is likely to have a net negative impact on operating profit of less than 1.0 per cent in 20221 and be neutral to positive in the following years.

Novo Nordisk and Emisphere have collaborated sine 2007 and the Eligen SNAC proprietary drug delivery technology is used by the acquiror under an existing licence agreement in the oral formulation of GLP-1 receptor agonist semaglutide, which is marketed under the brand Rybelsus.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,155 deals worth a combined USD 76.26 billion targeting pharmaceutical preparation manufacturers announced worldwide in 2020 to date.

Both volume and value are down significantly on dealmaking levels recorded during the full 12 months of 2019 when 2,006 transactions valued at an aggregate USD 255.75 billion were signed off.

In the largest deal of 2020, Gilead Sciences has agreed to acquire Immunomedics for USD 21.00 billion.

Other targets have included Regeneron Pharmaceuticals, Asklepios Biopharmaceutical and Yunnan Baiyao Group.

© Zephus Ltd